RSI: Stocks in overbought and oversold zones

Relative Strength Index (RSI) is one of the most-used technical indicators. Here we would be listing stocks having RSI in overbought and oversold zones.

Nifty 50 today had a rough start. In fact, in the first half, it shed almost 166 points or 0.91%. However, in the second half, it seems to have recovered and is trading above its todays open. It is facing resistance at the 18,237 level.

That said, in the current market situation it makes more sense to have a stock-specific view. To screen one, there are various factors that you can take into consideration such as market cap, volumes, etc. However, checking the momentum indicator would definitely help you screen stocks. One of the most popular momentum indicators is the Relative Strength Index (RSI).

RSI is an indicator that helps you measure the magnitude of recent price changes to evaluate overbought or oversold situations. RSI is usually displayed as a line graph on a scale of 0 to 100 which moves between two extremes. It is believed that stocks with an RSI of 70 or above suggest overbought or overvalued conditions and probably signal for a trend reversal or correction. On the flip side, an RSI of 30 or below suggests an oversold or undervalued situation.

Here is the list of the top 10 stocks with RSI in overbought and oversold zones.